• I hired Ward Richmond because I needed a fast-paced individual who specializes in solutions for 3PLs and could deliver a comprehensive solution that maximized site value and enabled me to close the deal. His market intelligence and relentless effort on this project undoubtedly helped us secure the business with this new, Fortune 500 customer.

    BRETT M. MEARS President - Palmer Logistics
  • Ward Richmond understands the 3PL business. We rely on Ward to help solve our customers’ supply chain opportunities and provide them with logistics solutions that fit their needs.

    BRYAN KELLER Chief Executive Officer – Keller Logistics
  • Ward has consistently demonstrated a high level of customer service, a strong work ethic, and comprehensive understanding of transportation & logistics-related real estate.

    ED Brickley Fund Manager, Realterm Logistics
  • Ward and his team have consistently delivered a high level of customer service over the course of several years and hundreds of transactions by working closely with our team in an effort to assist us with developing and implementing creative real estate solutions.

    Frank Mazzone RM, Real Estate, TFI International
  • Positive attitude and customer-centered approach made for a great working relationship.

    Joe Fidalgo MD, N America, Marine Harvest
  • Ward and his team have consistently exceeded our expectations while working closely with our Properties Team to execute our real estate strategies and achieve our stated objectives.

    MAYNARD F. SKARKA COO, Yrc Freight
  • The Colliers team worked quickly and efficiently to leverage their local market relationships to find KW multiple short term, flexible space solutions in an expedient and professional manner.

    DEAN DOKGO Vice President, KW International
  • Ward has acted as our strategic real estate partner for several years having assisted our team during our rapid growth by utilizing strong relationships and unparalleled market knowledge to source off-market opportunities for property expansion needs.

    TAYLOR WHITE CEO, Performance POP

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DFW Market Report – Q3 2019

DFW Market Report – Q3 2019

October 24, 2019 Market Reports 0 Comments 183 views

The Summer Lull

By Ward Richmond

As we cruise into Q4, I’m about ready to put 2019 in the rearview mirror of my 18 wheeler and truck on down the road into 2020.

Between the ongoing trade disputes with China and quite possibly, the most highly anticipated presidential election in the history of the USA on the horizon, this has been a pretty odd year in the world in general, to say the least.

Not surprisingly, these macro market moving events have certainly had an impact on us in the world of Supply Chain Real Estate. During Q3, we saw industrial occupiers take a step back and hit the pause button on major capital expenditures.

That being said, the DFW Metroplex is still hanging in there this year at a strong and steady 15 Mil SF in YTD absorption despite having a fairly lackluster 3 Mil SF absorbed in Q3 2019.

Industrial developers on the other hand, are doubling down on the Home of the Dallas Cowboys and the Rise of eCommerce with 36 Mil SF of new industrial inventory currently under construction in DFW. Despite this staggering figure, developers have only delivered 16 Mil SF YTD. Therefore, as of today, DFW new construction and absorption metrics have remained fairly well aligned in 2019.

Landlords remain bullish and continue to push rates hitting a new record high average asking rate of $3.86 psf NNN for Big Box (200K SF+) product. The Non Big Box rates continue to get pushed up as well closing in on average asking price of $6 psf NNN. This makes sense given extremely limited Non Big Box inventory with a Sub 4% Vacancy in multiple infill submarkets.

Deal activity in Q3 2019 was fairly weak compared to the first half of 2019 and the largest lease signed in Q3 was a 1.2 Mil SF renewal with LG Electronics at their Alliance facility. We are seeing an uptick in renewal activity and a lot of our clients would really prefer to extend leases on a short term basis while they patiently wait for Amazon to figure out how to deliver them a crystal ball (same day shipping preferred!).

We are keeping our heads down and working hard to continue helping our customers meet the ever-growing demands of Speed and Flexibility in their supply chains in an effort to maximize corporate real estate value and enhance process efficiency.

To get further inside my supply chain brain,
please check out my website and blog:
www.SupplyChainRealEstate.com

Q2 2019 TOP TEAM RICHMOND PROJECTS

    • Dal-Tile Corporation – Mesquite, TX 156,293 SF Lease
    • E.L.Farmer & Company – Houston, TX 103.69 Ac Sale
    • 4000 Dan Morton – Dallas, TX 130,000 SF Renewal
    • Palmer Logistics – Grand Prairie, TX 52,812 SF Renewal
    • Keller Logistics – Tacoma, WA 122,500 SF Sublease

Q2 2019 TOP DFW DEALS

    • LG Electronics – USA Inc. renewed 1.2 M SF at alliance in Roanoke, TX from Hillwood
    • Schluter Systems – leaded 550,555 SF at alliance northport in Roanoke, TX from Hillwood
    • American Airlines leased 394,143 SF at DFW airport
    • Ericsson leased 306,280 SF at Majestic airport center DFW in Lewisville from Majestic realty
    • Emergent Cold – leased 300,000 SF at Carter Industrial Park on fort worth from Hunt Southwest

Key Takeaways

Landlords set a new high mark for asking rental rates with an overall asking rates of $3.86 NNN.

The vacancy rate dropped below 10% for the first time in over a year coming in at 9.6%. With 25% of the under construction product leased up, expectations are for vacancy rates to rise in the coming quarters.

Construction of Big-Box product at the end of the 3rd quarter has set a new ALL-TIME high with a total of 56 buildings comparised of over 30 million square feet in the works. Sixteen of these buildings started construction in the 3rd quarter alone.

Year of data Absorption is strong at 11.2 million square feet. Over 75 million square feet has been absorped in DFW in the last 5 years.

MEET THE TEAM MEMBERS

Ward Richmond has over twelve years of experience specializing in industrial real estate, and has negotiated over 500 transactions while working in over 100 cities across the USA, Canada, and Mexico. Several publications have featured Ward for his expertise in this field including the Wall Street Journal, Dallas Morning News, and Dallas Business Journal. He also serves on Colliers International Industrial Advisory Board, and is a member of the Logistics & Transportation Solutions Group.

WARD RICHMOND, SIOR
Executive Vice President

COLE HOOPER
Senior Associate

ZACK RUTLAND
Associate

JAMES EWING
Associate

KRISTINA RODRIGUEZ
Client Services Specialist

The Gladiator Group is supported by Colliers International Research Team

ON THE ROAD AGAIN

Oct 26 2019: Arete Live, St. Louis, MO
Nov 8-11 2019: Summit LA19, Los Angeles, CA
Jan 22-24, 2020: BGSA Supply Chain Conference, Palm Beach, FL
Feb 21-23, 2020: Grant Cardone 10X Growth Conference, Las Vegas, NV
Mar 15-17, 2020: IWLA Convention & Expo, San Diego, CA




About the Author